Oromia Insurance Company has introduced a new service using satellite data to insure pastoralists in Southern Ethiopia by using Index Based Livestock Insurance (IBLI).
According to OIC, for the first time, the insurance company has paid more than half a million birr to Borana pastoralists insured by IBLI.
OIC, one of the private insurance companies in Ethiopia, embarked upon the IBLI in August 2012 and has been underwriting this product in ten pastoral woredas of the Borana Zone, Oromia Regional State.
According to a statement OIC sent to The Reporter, in 2014, OIC sold 1,138 policies covering 2,563 head of livestock and it gives the insurance cover for cattle, camel and shoats (sheep and goat) for ETB 6,000, 10,000 and 800, respectively.
Index-Based Livestock Insurance 